4 Reasons to Be Excited About Blockchain in HR

02 Aug 4 Reasons to Be Excited About Blockchain in HR

If you keep up with HR technology, then you already know everyone is talking about blockchain.

It’s one of the hottest topics across most industries today — and human resources is no exception.

Like job boards in the early 2000’s and data analytics a few years back, blockchain has the potential to be the latest disruptor in the HR industry.

Sure, some of it is speculation. Not every application of blockchain technology is available today.

But there’s no question that HR leaders are already beginning to see blockchain evolve in key areas of their business like payroll, recruitment, and records management.

So, if you’re reading this and don’t know what blockchain is or how it’s going to impact your business, strap in because I’m sharing four reasons everyone in HR should be excited about this new technology.

What is Blockchain?

I get it. In theory, blockchain seems confusing. But it’s actually quite simple.

And that’s because there are plenty of other uses for the technology outside of cryptocurrencies.

Here’s an easy breakdown for you:

In its simplest form, a blockchain is a string of records.

Picture it like that little security window between you and a bank teller.

You have a $50 bill you want to deposit into your account, so you place it in that little glass box and close the window on your side.

Now, objectively, anyone — you, the teller, the bank manager, even other customers — can validate that there is, in fact, $50 sitting in that glass box.

It’s that confirmation that allows the teller to open up their end of the glass box and take the $50 out.

See? Pretty simple, right?

Now, picture there are multiple other transactions happening in their own respective glass boxes all around you at the exact same time. And the “bank” confirms each one in the same way: by the collective agreement that there is actually the item of value — whether it be money or in the case of blockchain in HR, something as simple as a CV — in the “glass box.”

It’s this string of records that acts as a ledger of information with the ability to transform your HR department.

“In a world where time is money, blockchain payroll solutions could mitigate the costs of cross-border payroll by reducing the fees for employers and the wait time for employees. Blockchain’s structure ensures security through a decentralized ledger, can provide payment to employees in real time, and can manage shifting currencies as a result of cryptocurrency.”

In other words: blockchain technology could allow HR teams to create their own currency to speed up transactions and dodge the costs of cross-border payments. Employees would be able to convert the created currency into real currency.

Companies like Bitwage, who focus on blockchain-based payroll, are already making waves in the HR industry.

Bitwage allows workers to use 25 different currencies and promises to deliver their wages within 48 hours.

“A blockchain-centric verification process could allow employers to develop databases of comprehensive employee profiles that compile authenticated data related to their work history. This system could significantly cut down the time it takes to select fit candidates for an open position. Assessments would be made based on the skills a candidate has been verified to have, not just the skills they chose to highlight in their resume, thus eliminating the need for extensive skill checks during the interview stage. Instead, talent professionals can focus their efforts on the critical factors of evaluation during hiring, such as assessing for cultural fit and goals alignment, ultimately saving time and money.”

So, blockchain will verify information and give you more time to focus on other areas of your job.

“Are there risks in the early adoption of any technology? Yes. But the risks of not investigating, and investing, in Blockchain could be even more dangerous. Some good advice for HR departments internationally, is to start the discovery journey now, or struggle to play catch up later. To actually capture the competitive advantages, will take turning early prototypes into more mature proofs of concept — and moving on from there…Blockchain technology seems to be here to stay.”

So, sit down with your HR team and discuss your ideas around implementing blockchain technology in the future.

If your team isn’t up to speed on the technology, use this information to educate them.

Blue Rock Search

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